Just a month after headlines exploded over Netflix’s $82.7 billion plan to acquire Warner Bros., the story has taken a dramatic turn. Netflix has officially declined to raise its offer, clearing the way for Paramount Skydance to move forward with its own acquisition of Warner Bros. Discovery in a deal that is valued at $110 billion.
In a statement from co-CEOs Ted Sarandos and Greg Peters, Netflix confirmed it would not match Paramount Skydance’s latest proposal, which Warner Bros. Discovery’s board deemed a “Superior Proposal” under the existing merger agreement.
Their joint statement read: “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Netflix said the deal would have created strong shareholder value and had a clear regulatory path, but at the higher price now required, it no longer made financial sense. The company described the acquisition as a ‘nice to have’ at the right price, not a ‘must have’ at any cost.
Instead, Netflix reiterated that its business remains strong and growing organically. It plans to invest around $20 billion this year in films and series while resuming its share repurchase program. For games, it is also investing in cross-game avatar technology with the acquisition of tech startup Ready Player Me.
This marks a reversal from earlier events, where Netflix was ready to bring Warner Bros., HBO, and major global franchises under its ownership once Discovery Global split off in 2026.
With Netflix stepping aside, Paramount Skydance has officially entered into a definitive merger agreement to acquire Warner Bros. Discovery. The transaction values WBD at $110 billion and is expected to close in Q3 2026, pending regulatory approval and shareholder votes.
David Ellison, Chairman and CEO of Paramount, a Skydance Corporation, said: “From the very beginning, our pursuit of Warner Bros. By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners, and shareholders, and we couldn’t be more excited for what’s ahead.”
The combined company aims to position itself as a next-generation global media giant, bringing together major IPs such as Game of Thrones, Harry Potter, DC Universe, Mission: Impossible, Top Gun, and SpongeBob SquarePants.
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